Detroit bankruptcy judge opens court to critics - Boston News, Weather, Sports | FOX 25 | MyFoxBoston

Detroit bankruptcy judge opens court to critics

Posted: Updated:
 DETROIT (AP) -- A judge overseeing Detroit's bankruptcy gave the microphone Tuesday to residents and retirees who oppose the city's proposal to cut pensions and other benefits as part of a plan to get solvent again.
 
Hundreds of people have filed objections to Detroit's bankruptcy exit strategy. About 80 were given five minutes each to speak to Judge Steven Rhodes during morning and afternoon sessions, although many didn't show.
 
"I never thought I would be struggling to get health care," retired bus driver Jesse Florence Sr. told the judge. "This is devastating. We have other obligations."
 
Another critic, Jo Ann Cooper, expressed doubts about the bankruptcy process.

 "I do not believe the city of Detroit is broke," she told the judge. "I have no proof of it. There have been a lot of lies over the years."

Detroit filed for bankruptcy a year ago, citing debt of about $18 billion. A so-called "grand bargain" involving the state, a group of private foundations and the Detroit Institute of Arts have pledged more than $800 million to ease the pension cuts while protecting city-owned art from being sold. 

Rhodes will hold a trial on Detroit's plan to get out of bankruptcy, starting Aug. 14. He must find that the exit plan is fair and feasible, among other things, in order for the city to shed billions of dollars in debt.

"Your input is extremely important in this process," Rhodes told the crowd.
 
Last Friday was the deadline for creditors to vote, including roughly 30,000 retirees and current and former workers. General retirees would see a 4.5 percent pension cut while retired police officers and firefighters would lose a portion of their annual cost-of-living adjustment. Detroit's two pension funds urged a "yes" vote.
 
The results will be announced Monday.
 
"We are hoping at the end of this process to provide better services in a revitalized city," Detroit bankruptcy attorney Heather Lennox told Rhodes.

  • Local NewsLocal NewsMore>>

  • YOUR PHOTOS: First day of school 2014

    YOUR PHOTOS: First day of school 2014

    Tuesday, September 2 2014 11:08 AM EDT2014-09-02 15:08:59 GMT
    It's back to school day!Many kids are heading back to school today. Is yours? We'd love to see your Back to School photos.
    It's back to school day!Many kids are heading back to school today. Is yours? We'd love to see your Back to School photos.
  • Detroit's historic bankruptcy trial begins

    Detroit's historic bankruptcy trial begins

    Tuesday, September 2 2014 10:53 AM EDT2014-09-02 14:53:37 GMT
    The trial to determine whether bankrupt Detroit's restructuring plan will be approved began earlier this morning.

    The trial to determine whether bankrupt Detroit's restructuring plan will be approved began earlier this morning. Follow live Tweets from the courtroom here. >>
  • Pedigree dog food recall expanded

    Pedigree dog food recall expanded

    Tuesday, September 2 2014 8:55 AM EDT2014-09-02 12:55:19 GMT
    Pedigree Dog Food has announced it is expanding last week's voluntary recall of Pedigree Adult Complete Nutrition dry dog food due to "the possible presence of a foreign material".
    Pedigree Dog Food has announced it is expanding last week's voluntary recall of Pedigree Adult Complete Nutrition dry dog food due to "the possible presence of a foreign material".
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

25 FOX Drive
Dedham, MA 02026

Phone (781) 467-2525

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices